ARCHIVED -  Public Notice CRTC 1999-135

Public Notice

Ottawa, 19 August 1999

Public Notice CRTC 1999-135

The definition of a Canadian program - clarifications & proposed revisions

1. In Public Notice CRTC 1999-97 dated 11 June 1999 entitled Building on Success - A Policy Framework for Canadian Television, the Commission announced that it would seek public comment on several matters related to Canadian programs.

2. This Public Notice calls for comments concerning proposed revisions to the Commission's definition of a Canadian program, defined in the Television Broadcasting Regulations, 1987, the Pay Television Regulations, 1990, and the Specialty Services Regulations, 1990. These revisions follow the Commission's review of the comments received pursuant to Public Notice CRTC 1998-59, which sought the views of the public about all aspects of the current definition.

3. The Commission received interventions from 37 parties during the round of comments that ended on 20 July 1998, and 26 during the second round, terminating on 17 August 1998. The Commission appreciates the high quality of the submissions it received during this public process and wishes to thank all parties for their views and participation. The Commission considered all of the submissions in reaching the modifications proposed herein. The full public record of all submissions is available at Commission offices.

4. The proposed definition of a Canadian program is set out in Appendices I and II to this document. Appendix I deals with live action and continuous action animated productions; some of the provisions of Appendix I apply also to other forms of animation. Appendix II sets out the remaining criteria for other forms of animation.

5. The proposed definition consolidates the criteria established in Public Notices CRTC 1984-94 and 1988-105, and the clarifications regarding production packages outlined in Public Notice CRTC 1987-28. Following consideration of comments from the public, the regulations will be amended to include the final wording. The amendments will come into force on 1 September 2000.

6. The majority of the revisions in the proposed definition clarify the wording of the current definition and reflect the interpretations that have been developed and used by the Commission over the past 15 years. The Commission will consider whether the practices described in these revisions should be continued following the receipt of comments.

7. The following are the areas of material change on which comments are sought:

· Short Interstitials: Productions of less than 5 minutes in duration, which consist predominantly of stock or existing footage, would no longer be certified.

· Advance Rulings and Preliminary Recognitions: These would no longer be issued.

· Producer: Producers would have to be prepared to submit, upon request, an independent legal opinion confirming that the financial and creative control of the production is in their hands.

· Series: At least 60% of the episodes would have to qualify as Canadian on their own for the entire series to receive accreditation.

· Old Productions: Pre-1984 productions would not be subject to the expenditure requirements.

· Sports Events: There would be a requirement for at least one Canadian to fill a major on-screen position.

· Dramatic Programming Credit: The existing 150% credit would become unavailable to the largest multi-station ownership groups, as announced in PN 1999-97. International co-ventures and co-productions of live action and continuous action animated drama would no longer be eligible. Live action programs that fail to achieve 10 points, even if a Canadian fills each position utilized, will not be eligible for the credit. Series would have a single two-year period for each airing of each cycle of the series, commencing with the air date of the first episode of the cycle.

· Stock Footage (Interpretation Notes): except for documentaries, foreign-produced stock footage would be limited to less than 50% of the running time of the program.

· Animation: The minimum Canadian expenditure levels for services and post-production/lab work would be 75%, and the key animator would have to be Canadian.

8. Canadian programs already certified by the Commission or the Canadian Audio-Visual Certification Office of the Department of Canadian Heritage (CAVCO) will continue to be recognized for CRTC certification.

The certification process

9. Several producers and their associations proposed that all, or at least some, of the Commission's administration of its accreditation function be transferred to CAVCO. This body also provides recognition for Canadian programs in administering the Canadian Film or Video Production Tax Credit. However, in making this suggestion, interveners made it clear that this should occur only if, among other changes, CAVCO were to make administrative modifications to ensure the timely processing of applications.

10. Alternatively, parties proposed that the criteria used to determine if productions are Canadian be harmonized between the Commission and CAVCO. This would have the effect of simplifying the application process for program producers.

11. In deliberating on these proposals, the Commission has noted the following:

· CAVCO's mandate under the Income Tax Act is to ensure that programs are Canadian for tax credit purposes. It takes great care in deciding which productions are successful in triggering such credits. Under its guidelines, current events, public affairs programs, talk shows, game shows, and sports events, among others, are ineligible for recognition as Canadian. Extensive documentation is required to establish Canadian copyright and ownership, company eligibility, and the commercial exploitation of productions in eligible genres.

· In comparison, the objectives to be furthered by the Commission under the Broadcasting Act (the Act) are very broad, and the Commission is empowered to make regulations prescribing what constitutes a Canadian program to further them. None of the genres mentioned above is excluded by the Commission from certification as Canadian, and the documentation required to support applications is typically far less complex than that submitted to CAVCO.

· The transfer of authority to CAVCO to determine which programs are Canadian would entail the abandonment of one of the Commission's mandates under the Act, and such a step may well be inconsistent with the Act. Delegation to CAVCO would entail the assignment to others of the administration of several Commission policies.

12. Based on the above, the Commission has concluded that the unification of the certification processes of two agencies with significantly different mandates, or the complete harmonization of the definitions that are based on those different mandates, is impractical. However, it notes that since 1984 it has adopted numerous CAVCO definitions and interpretations, where appropriate, and is taking the opportunity to clarify these in this Notice. The Commission is confident that the publication of these clarifications will underscore the similarities between CAVCO's guidelines and the Commission's definition, making the application process less complex for producers that deal with both.

The ten-point system

13. Several organizations and guilds recommended the raising of the minimum of 6 points assigned to key creative positions to 8 or more. Others expressed the view that the current minimum strikes an appropriate balance between "cultural" and "industrial" objectives.

14. The Commission agrees with the latter position, and notes that the 6-point minimum conforms to CAVCO's guidelines.

The special recognition process for co-ventures

15. Two producers' associations recommended that the Commission's practice of awarding "special recognition" to co-ventures be abolished, because these productions limit the "shelf space" for the broadcast of truly Canadian programs.

16. These are internationally co-produced projects that are not encompassed by the treaties signed by Canada with, to date, 52 countries. Official treaty co-productions are administered jointly by Telefilm Canada and CAVCO.

17. Broadcasters opposed this recommendation, pointing out that the recognition of co-ventures as Canadian provides additional flexibility to producers seeking foreign financing.

18. In the past, the Commission has certified only six or seven co-ventures per year and, at this rate, the special recognition (or "SR") process does not seriously reduce access to broadcasters' schedules for other types of productions. The Commission will continue the special recognition process for co-ventures, as modified in Appendix I to this notice, in recognition of the importance of maintaining a range of methods for Canadian producers to finance their programs.

Call for comments

19. The Commission invites written comments that address the issues and questions set out in this notice. The Commission will accept comments that it receives on or before 20 September 1999.

20. The Commission will not formally acknowledge written comments. It will, however, fully consider all comments and they will form part of the public record of the proceeding, provided that the procedures for filing set out below have been followed.

Procedures for filing comments

21. Interested parties should send their comments to the Secretary General, CRTC, Ottawa, K1A 0N2

· Parties must file all submissions in "hard copy format" (i.e. on paper).

· Comments longer than five pages should include a summary.

22. The Commission also encourages parties to file electronic versions of their comments by e-mail or on diskette. The Commission's e-mail address for electronically filed documents is procedure@crtc.gc.ca

· Electronic submissions should be in the HTML format. As an alternative, those making submissions may use "Microsoft Word" for text and "Microsoft Excel" for spreadsheets.

· Please number each paragraph of the comment. In addition, please enter the line ***End of Document*** following the last paragraph. This will help the Commission verify that the document has not been damaged during transmission.

23. The Commission will make comments filed in electronic form available on its web site at http://www.crtc.gc.ca in the official language and format in which they are submitted. This will make it easier for members of the public to consult the documents.

Examination of public comments and related documents at the following Commission offices during normal business hours

Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room G-5
Hull, Quebec K1A ON2
Tel: (819) 997-2429 - TDD: 994-0423
Telecopier: (819) 994-0218

Bank of Commerce Building
1809 Barrington Street
Suite 1007
Halifax, Nova Scotia B3J 3K8
Tel: (902) 426-7997 - TDD: 426-6997
Telecopier: (902) 426-2721

Place Montréal Trust
1800 McGill College Avenue
Suite 1920
Montréal, Quebec H3A 3J6
Tel: (514) 283-6607 - TDD: 283-8316
Telecopier: (514) 283-3689

Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: 983-8274
Telecopier: (204) 983-6317

530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: 666-0778
Telecopier: (604) 666-8322

CRTC Documentation Centre
55 St. Clair Avenue East
Suite 624
Toronto, Ontario
M4T 1M2
Telephone: (416) 952-9096
Telecopier: (416) 954-6343

CRTC Documentation Centre
Cornwall Professional Building
2125 - 11th Avenue
Room 103
Regina, Saskatchewan
S4P 3X3
Telephone: (306) 780-3422
Telecopier: (306) 780-3319

This notice is available in alternative format upon request, and may also be viewed at the following Internet site: http://www.crtc.gc.ca

Secretary General

Appendix I to Public Notice CRTC 1999-135

Material excluded from recognition

· Infomercials and other forms of advertising material

· Public service announcements

· Promotional and corporate videos/films, such as those produced by groups and businesses for public relations reasons, recruitment, etc.

· Pornography

· Program segments of less than five minutes in duration comprised predominantly of stock footage.

Advance rulings/preliminary recognitions

The Commission will issue final recognition or special recognition, as the case may be, to any licensee, producer or property rights holder, where the program satisfies the requirements of the definition of a Canadian program. The production must be under way, with all key creative personnel under contract and committed budgets in place. Applications for advance rulings or for preliminary recognitions will no longer be accepted. The clarifications described below should ensure that the requirements for recognitions are well understood by interested parties.

Station and network productions

To be recognized as Canadian, programs produced solely by licensees must meet the Canadian program recognition criteria stipulated in this Notice. However, unless requesting the drama credit, licensees need not apply for recognition or submit production information for such productions, except where specifically requested to do so by the Commission. If the Commission makes no such request, programs produced solely by licensees shall be deemed to be Canadian.

The criteria for the recognition of Canadian programs do not apply to news and public affairs programs produced solely by licensees. Such programs shall be recognized as Canadian.

Recognition by CAVCO

The Canadian content certification given by the Minister of Canadian Heritage, upon recommendation by Telefilm Canada or CAVCO, will also constitute recognition for Canadian programs by the Commission.

Criteria: recognition for Canadian programs

I. Basic Definition of a Canadian Program

The Commission will recognize as a Canadian program, a live, videotape or film production, that meets the following:

A. Producer: the producer controls and is the central decision-maker of the production from beginning to end, and must be Canadian. Additionally, all those fulfilling producer-related functions must be Canadian. The producer must be prepared to demonstrate full decision-making power through the submission of ownership documents, contracts, or affidavits upon request. The producer must be prepared to submit, upon request, an independant legal opinion confirming that financial and creative control of the production is Canadian.

Exemptions will be considered for non-Canadians to receive courtesy or vanity credits for producer-related functions as described in the current CAVCO guidelines. However,

· The remuneration to the Canadian producer must exceed the aggregate remuneration of foreign executive producers.

· Foreign executive producers must limit their time on the set to 25% of principal photography, and their role solely to that of observers.

The duties of foreign executive-producers shall be limited to non-creative, non-production related functions, such as arranging foreign distribution and financing (The CAVCO guidelines provide a fuller description of the "individual production-related positions and screen credits").

The Commission, however, will not adopt CAVCO's exemption for the writer credit.

B. The point system: A live action or continuous action animated production (a separate point system applies to other forms of animation: see Appendix II) must earn a minimum of six units of production or points based on the following key creative functions being performed by Canadians:

Director - 2 points
Writer - 2 points
Leading performer
(or first voice) - 1 point
Second leading performer
(or second voice) - 1 point
Head of Art Department - 1 point
Director of Photography - 1 point
Music composer - 1 point
Picture Editor - 1 point

Notwithstanding the above, at least one of the director or writer positions and at least one of the two leading performers must be Canadian.

Determination of leading performers will take into account billing, screen-time and payment. In non-dramatic productions, the second lead must have at least 50% of the screen time and 50% of the remuneration of the principal lead, plus billing similar to the principal lead. Individuals not meeting these criteria will be considered as filling minor roles.

In category 7, 8, and 9 programs (Drama, Music & Dance, Variety) the leads will be the performers. In other program types, the leads will usually be the host, narrator, commentator, moderator, quizmaster, etc.

The host of a documentary is normally compensated; the subject is not. In a documentary series, the same subject is not usually prominent in every episode; the host is.

Productions in which non-Canadians are the only leading performers will not be accepted as Canadian, and the addition of Canadians in minor roles will not be sufficient for a production to qualify.

Under exceptional circumstances, upon application the Commission may recognize as a Canadian program a production in which the positions of either:
a) director and writer are non-Canadian, or b) both leading performers are non-Canadians, as long as all other key creative functions are filled by Canadians.

Interpretation notes maybe found in section X below.

C. Expenditures:

Services Costs - at least 75% of services must be paid to Canadians. Services costs are the total costs remaining after excluding the following from total expenditures:

· Remuneration for Canadian producers

· Remuneration for key creative personnel eligible for points

· Post-production/lab costs

· Accounting and legal fees

· Insurance brokerage and financing costs

· Indirect expenses

· Contingency costs, and

· Purchased goods, such as film/videotape supplies.

In particular, services expenditures include the remaining costs after subtracting the costs for the Producer, "Key" Creative personnel, post-production/laboratory costs, goods purchased and other costs not directly related to production.

Post-Production/Lab Costs - at least 75% of post-production/laboratory expenses, except those attributed to the picture editor, must be paid for services provided in Canada by Canadians or Canadian companies.

The Commission may require audited statements and/or affidavits in support of an application. Where the Commission has not developed specific descriptions and interpretations, those detailed in the CAVCO certification guidelines may be used.

II. Series

Recognizing that the production elements of a series of programs may vary and that some of the episodes, if considered individually, could fall below the minimum requirements of the point system, the Commission will examine a series in its entirety and will grant it recognition if, on an overall average, it meets the minimum requirements (60%).

For the present purposes, a "series" means two or more programs produced by the same production company/producer, having the same title, the same duration of episodes, a common theme, situation, or set of characters, and completed within a 12-month period.

In order for a licensee to claim Canadian program recognition for any episodes in a series which might not meet the 6-point Canadian program recognition criteria, at least 60% of the series episodes must exceed such criteria and are broadcast or otherwise distributed at equitable times.

Each episode in a live action or continuous action animated series must fulfil the mandatory writer or director rule and the leading performer requirement (minimum of 3 points). Each episode in an animated series must fulfil the mandatory scriptwriter and storyboard supervisor or director rule, the first or second voice or performer requirement, and the key animator/animation (person and location) (minimum of 3 points).

The 150% dramatic programming credits are unavailable to productions that require the application of the series averaging rule in order to obtain accreditation.

Episodes that are ineligible for recognition for any reason will not be segregated from the remainder of the episodes.

III. Pre-1984 Productions

The Commission will grant recognition to productions that were completed prior to 15 April 1984 for which credible evidence is provided that:

· the producer was Canadian, and that

· the production would have qualified under the point system, had it been in effect when the production was completed.

The expenditure rules will not be applied.

Productions certified under the pre-1984 definition will continue to be recognized as Canadian.

IV. Sports Events

Live or live-on-tape productions of sports events or tournaments will be considered Canadian where a Canadian production company has production control and provides the commentators, whether the event takes place inside or outside Canada; in the latter case, the production would qualify only where Canadian-based teams or athletes participate in these events or tournaments. One of the major on-camera personalities (commentators, analysts, hosts) must be Canadian.

In the case of broadcasts of sports events originating outside Canada, involving non-Canadian teams or athletes and for which a commentary is provided by a Canadian commentator in a language other than English, one-quarter (25%) of the program time attached thereto shall be deemed to be Canadian.

Other types of sports programs are assessed for recognition as Canadian under the point system.

V. Music Videos

A. Definition of a Canadian Music Video:

Music videos, the short film or videotape productions or concert excerpts (clips) not produced primarily for the particular program in which they are presented, which normally contain one musical selection with visual material, will be considered as Canadian where they meet the requirements of item 5 below, as well as those of one of 1, 2, 3, or 4 below.

1. They meet at least two of the following audio conditions a) through e):

a) the music is or lyrics are performed principally by a Canadian;

b) the music is composed entirely by a Canadian;

c) the lyrics are written entirely by a Canadian;

d) consists of a live performance that is wholly recorded in Canada;

e) the performance was recorded after 1 September 1991, and a Canadian who has collaborated with a non-Canadian receives at least 50% of the credit as composer and lyricist according to the records of a recognized performing rights society;

2. or is an instrumental performance of a musical composition that meets the conditions set out in 1b) or c) above;

3. or is a performance of a musical composition that a Canadian has composed for instruments only;

4. or has already qualified as a Canadian music video under the regulations previously in effect,

5. and meets at least one of the following conditions a) through c):

a) the video director or producer is Canadian;

b) the video production facilities are located in Canada; and

c) the video has already qualified as a Canadian selection under regulations previously in effect.

All forms of Canadian short performances, including commercial music videos that appear outside music video programs and logged as category 8b) [Music Video Clip] need a recognition number from the Commission.

B. Music Video Programs:

For programs consisting predominantly of music videos and in some cases including a host and other programming elements, Canadian program recognition will be awarded if all elements other than the music videos qualify as Canadian, and a minimum of 30% of the music videos are Canadian.

This last provision does not apply to music specialty services.

VI. Dubbing

Where a program is not a Canadian program and is produced in an official language of Canada or a native Canadian language, and the audio portion of that program is converted into the other official language of Canada or a native Canadian language by a process of lip synchronization done in Canada, using Canadian resources, one-quarter (25%) of the program time attached thereto shall be deemed to be Canadian.

Where a program is not a Canadian program and is produced in a language other than an official language of Canada or a native Canadian language, and the audio portion of that program is converted into an official language of Canada or a native Canadian language by a process of lip synchronization done in Canada, using Canadian resources, one-half (50%) of the program time attached thereto, to a maximum of 50 hours during each six-month reporting period, shall be considered as Canadian.

VII. Special Recognition For Co-Ventures

Co-ventures are defined as international co-productions not included under the treaties administered by Telefilm Canada. They include all ventures with co-producers of any foreign country that does not have a film or television production treaty with Canada, and ventures with co-producers of any treaty country, where such ventures are not specifically covered by any treaty. The key function in these co-ventures is that of the producer.

Such co-ventures will qualify for special recognition and will be given 100% Canadian program credit when broadcast or otherwise distributed by a licensee of the CRTC, even though some of the producer functions are performed by non-Canadians, where co-venture agreements and other documentation substantiate that the Canadian production company:

· has no less than an equal measure of decision-making responsibility with other co-venture partners on all creative elements of the production, and

· is responsible for the administration of not less than the Canadian element of the production budget.

The application for Canadian recognition must be made by the Canadian production company and must be accompanied or supported by signed agreements between the co-venture partners. Such co-venture agreements will be kept confidential.

The decision-making responsibility for the production will be deemed to be in the hands of a Canadian production company when that company:

· has sole or co-signing authority on the production bank account: for co-ventures shot entirely in Canada, the production bank account must be in Canada; for those shot partially in Canada, a Canadian bank account would be required for that portion of the production shot in Canada; in the case of co-ventures shot entirely outside Canada, there must be a Canadian bank account for payment of the Canadian elements of the program;

· has financial participation in the production and the entitlement to profit sharing; beginning on 1 September 2000, the Canadian production company must retain a financial participation position of at least 25% and a 25% share of the profits; beginning on 1 September 2001, the Canadian production company must retain a financial participation position of at least 50% and a 50% share of the profits;

· is at financial risk and/or has budgetary responsibility;

· has no less than an equal measure of approval over all elements of the production with the co-venture partners, regardless of the number of foreign persons fulfilling the functions of executive producer or producer.

With regard to points and expenditures, a co-venture with a co-producer from a Commonwealth or French-language country, or a country with which Canada has a film or television production treaty, will be considered as qualifying for Canadian program special recognition where, in addition to meeting the foregoing requirements, it attains 5 points, and at least 50% of the costs for services are paid to Canadians, and at least 75% of post-production and laboratory costs (except for picture editor) must be paid for services provided by Canadians or by Canadian companies, in Canada. Notwithstanding the above, the director or the writer and at least one of the two leading performers must be Canadian. All other considerations for recognition of a Canadian program apply to such a co-venture.

Any other co-venture will be required to meet the same points and expenditure minimum requirements as a domestic production.

VIII. Production Packages

A "production package" means two or more co-productions or co-ventures, undertaken by a Canadian production company together with one or more non-Canadian production companies, where a production that qualifies as a Canadian production, with minor foreign involvement, is matched with a foreign production, with minor Canadian involvement.

The Commission will be prepared to accept as Canadian, production packages on the following conditions:

a) The Canadian copyright for both productions must be held by Canadians;

b) The budgets of both Canadian and foreign productions must be approximately equal;

c) Co-production agreements/contracts between the Canadian production company and foreign producers must be submitted to the Commission with the applications;

d) The Canadian production company must have equity interest and profit sharing in the Canadian and foreign productions;

e) The Canadian and foreign productions must be licensed to the same Canadian programming licensee. Canadian program credit may not be claimed by any Canadian licensee for the production with the minor Canadian involvement, unless and until the Canadian production has been broadcast;

f) All productions in a production package must fall within the same program category;

g) Production package programs are acceptable only in the categories of drama, variety, documentary and children's. Animated productions are excluded;

h) Matched (or twinned) productions must be approximately equal in duration;

i) Matched (or twinned) productions must receive equitable scheduling on the same Canadian station or network; and

j) Ten-point productions in production packages will not also qualify for the dramatic programming credit of 150%.

While these conditions do not contain a requirement that the production with major Canadian involvement receive exposure in the other country involved, the Commission would expect that the Canadian co-producer would include such an arrangement in his agreement with the non-Canadian co-producer.

IX. Dramatic Programming Credit

Subject to a condition of licence to the contrary, the Commission will award a 150% time credit for a live action or continuous action animated drama carried by a licensee, which meets the following criteria:

a) is produced by a licensee or a Canadian production company after 15 April 1984;

b) is recognized as a Canadian program (receives a "C" number from the Commission) and achieves 10 points;

c) is broadcast between the hours of 7:00 p.m. and 11:00 p.m., or, in the case of a dramatic program intended for children, at an appropriate children's viewing time; and

d) contains a minimum of 90% drama content.

Each licensee will receive a dramatic programming credit for each showing of a drama occurring within a two-year period from the date of first showing. Series will have a single two-year period for each cycle of the series, commencing with the air date of the initial episode from that cycle.

Programs that fail to achieve 10 points, even if each applicable position is filled by a Canadian, will not be eligible for the credit.

X. Interpretation Notes

A. Canadian production company:

A "Canadian production company" is a licensee of the CRTC or is a Canadian company which carries on business in Canada with a Canadian business address, which is owned and controlled by Canadians and whose principal business is the production of film, videotape or live programs for distribution on television or in theatrical, industrial or educational markets.

B. Point System:

In productions where not all of the key creative positions are utilized, and there are less than six points possible, recognition will be granted if Canadians perform all key creative functions.

Points will only be awarded in respect of a particular position if all persons sharing the duties of that position are Canadian.

C. Producer:

The producer is expected, inter alia, to be involved in acquiring and developing the story, selecting and engaging the key creative personnel, budget preparation, financing, control of expenditures and distribution of the production.

D. Writer:

The term "writer" includes screenwriter, script writer and in the case of animation, a story board supervisor, where applicable.

Each individual involved in the preparation of the screenplay must be Canadian. This means that all the individuals engaged in developing the screenplay, from the outline or treatment through the various drafts and dialogue polishes to the final shooting script, must be Canadian, or

The principal writer is a Canadian individual and the screenplay for the production is based on a work authored by a Canadian and the work is published in Canada.

The Commission will examine credits, such as the following, to assess the qualification for this position:

· Story Editor (Executive, Senior, Junior)

· Creative Consultant

· Story Consultant, Executive Story Consultant

· Creative Producer

The Head of the Art Department will generally be the Production Designer in a live action or continuous action animated production. If there is no production designer, the Art Director will be considered Head of the Art Department.

F. Director of Photography or Technical Director:

If there is no Director of Photography the equivalent is chief camera operator. The Lighting Director is accepted as a Technical Director on videotape productions.

G. Music composer:

The point is awarded only if a Canadian has been assigned to compose the original music for the production. The rearrangement of existing music, even if it is Canadian, utilizes the position but does not earn the point. Existing stock, library, or archival music may be used in addition to the original music, but must be predominately Canadian. The position of music director is not accepted as a music composer.

H. Picture Editor:

Means Film Editor. The positions of Sound or Music Editor will not be acceptable in the place of Picture Editor. For video productions, the equivalent to Picture Editor is the Off-Line Editor.

I. Other matters:

Productions, excluding documentaries, that are made up predominantly of existing footage (stock, archival, library, B-roll, etc.) produced by a foreign producer will not qualify as Canadian, even if assembled or edited in Canada with Canadian narration.

Neither the repackaging or the adaptation of existing foreign productions or program segments will qualify as Canadian or as Canadian documentaries. Such repackaging involves some or all of:

· Excerpts from a previous original foreign production;

· The use of a significant portion of the original foreign production in essentially unedited chunks;

· The mention of the original foreign production in the credits.

Productions that have not used repackaging entail the more intense editing of stock footage. Relatively short portions are carefully selected from a variety of sources to illuminate and develop the subject.

Appendix II to Public Notice CRTC 1999-135: Animation

Criteria: recognition for Canadian animated programs (other than continuous action animation)

I. Types of Animation

Animation refers to the process of creating the appearance of motion through the use of inanimate or still elements in the many forms of traditional animation, and through the use of digital synthesis in computer-assisted or computer-generated animation.

A. Computer animation:

Computer-assisted animation

Through this technique, pre-existing animated material is revised with the assistance of computer technology.

Computer-generated animation

Through this technique, animated movement is generated principally or wholly through digital image synthesis by means of computers and computer programs.

B. Traditional Animation:

For these purposes, traditional animation is of two kinds: frame-by-frame or continuous.

Frame-by-frame animation is the process of filming or otherwise recording a series of poses of figures, objects or shapes, or drawings each slightly displaced from the preceding poses, or of drawing them in sequence on successive frames of recording material, one or more frames at a time, so that when the film is projected or the recording played, the figures, objects, shapes or other elements give the illusion of movement.

The process of continuous animation involves moving figures, objects or shapes by means of mechanical or other devices to give the illusion that they are moving on their own.

The Commission will treat continuous action animation as live action and continue to use the definition of Canadian program outlined in Appendix I above.

Among the many types of traditional animation are the following:

1. Cell animation

Cell is the name given to the transparent celluloid material on which drawings are made in the film technique of cell animation. This kind of animation is usually done by exposing one or more frames of film or other recording material for each cell.

2. Puppet animation

This type of animation can be of two kinds. In the first, sometimes referred to as stop-motion animation, two or three-dimensional figures rather than drawings or paintings are recorded frame-by-frame.

In the second, the animation is continuous, controlled by a puppeteer with the movement of the figures occurring in "real time". The latter is subject to the same criteria as live action.

3. Pixillation animation

This is a technique of animation using live-action shots of real people in real locations to achieve the effect of having actors jump, jerk or twitch as if they were being animated. There are three ways of obtaining this effect:

a) by editing single frames from live-action shots and omitting intervening film material;

b) by posing actors as if they were puppets and taking single-frame photographs of each pose; and

c) by taking one frame at a time during normal action (speed-up) or slowed-down action (normal).

4. Camera-less animation

This technique involves drawing or painting directly on film frames.

5. Other forms of traditional animation

Other types of traditional animation, less commonly used, include the pin-screen, silhouette, anaform and sand (drawing and form) techniques. The Commission will treat these types generally as frame-by-frame animation.

II. The Inapplicability of Certain Sections of Appendix I

The criteria outlined in Appendix I apply to both live action and animated productions, except in the following areas:

· the point system, including the mandatory positions

· the dramatic programming credit, and

· the interpretation notes regarding the Head of the Art Department, the Director of Photography, and Music Composer.

These criteria are described below, as they apply to animated productions (excepting continuous action animation).

III. The Assessment of Animated Productions

Computer-assisted animation is dealt with in the same way as traditional animation. This can, depending on the nature of the production, involve either the criteria for frame-by-frame animation or those for continuous animation (i.e., live action in which case it will be dealt with under the provisions of Appendix I above).

Computer-generated animation will be dealt with on a case-by-case basis, generally in accordance with the rules for frame-by-frame animation.

Sometimes productions include mixes of animation and live action. In these cases, productions will be assessed according to the criteria of the predominant format, unless the minor format exceeds 20%, when both sets of rules will be used.

IV. The Point System

An animated production must earn a minimum of six units of production or points based on the following key creative functions being performed by Canadians or, where applicable, in Canada:

Director 1 point
Scriptwriter and storyboard
supervisor 1 point
First or second voice 1 point
(or first or second leading performer)
Design supervisor 1 point
Layout and background (location) 1 point
Key animator (person) and key
animation (location)1 point
Assistant animation/In Betweening
(location) - 1 point
Camera operator (person) and operation (location) 1 point
Music composer 1 point
Picture Editor 1 point

Determination of first and second voice (or first or second leading performer) may take into account billing, screen time, number of lines and payment.

Where the point is assigned to a person or persons, the point will be awarded only if all of those sharing the duties of that position are Canadian; where the point is assigned to a location, it will be awarded only if all of that function is performed in Canada.

In productions that employ a scriptwriter but no storyboard supervisor (or vice versa), the point will be awarded if the person or persons performing that function is or are Canadian.

The Commission will, for most types of animation, consider it mandatory that the following persons or locations or both be Canadian:

· Director or the combination of scriptwriter and storyboard supervisor (persons)

· Key animator, and key animation (location) (excluding pixillation)

· First or second voice (OR first or second leading performer)

· Camera operator (person) and operation (location), for pixillation only.

V. Dramatic Programming Credit

The Commission will award a 150% time credit for an animated dramatic production other than a continuous action production carried by a licensee, other than those private conventional television licences held or controlled by a group licensed to operate in several provinces with a potential reach of more than 70% of the audience in their language of operation, which meets all of the following criteria:

· that it is produced by a Canadian licensee or an independent production company after 15 July 1988;

· that it is recognized as a Canadian program (receives a "C" number) and achieves the points for each key creative function utilized in the production (the principal use of stock music -- even if Canadian -- means the function applies, but the point will not qualify as Canadian); and

· that it is broadcast

(i) between the hours of 7:00 p.m. and 11:00 p.m., or

(ii) in the case of an animated dramatic production intended for children, at an appropriate children's viewing time.

Each licensee will receive a dramatic programming credit for each showing of an animated dramatic production occurring within a two-year period from the date of first showing. Series will have a single two-year period for each cycle of the series, commencing with the air date of the initial episode from that cycle.

Co-productions and co-ventures do not qualify for the dramatic programming credit, as the producer functions, by definition, are shared between Canadians and non-Canadians.

Taking into account that in animated productions the number of qualifying functions may vary, depending on the type of animation, as well as on the particular production, the Commission will allow a 150% Canadian dramatic programming credit not only for animated dramatic productions other than continuous action productions that meet all ten criteria, but also for those for which not all ten functions are required, as long as the functions that do apply all qualify as Canadian.

VI. Descriptions of the Various Functions in Animated Production

A. The following functions are eligible to receive points:

Director: The director has overall control of the artistic and creative aspects of the production; establishes the instructional workbook for the production from script and storyboard; times the action and supervises the creative and technical aspects of the work in the various stages of production; provides shot-by-shot and frame-by-frame, details of the camera movement and shot punctuation (done by preparing the timing of each individual scene at the storyboard stage); prepares the bar-sheets, or exposure sheet instructions for the animator.

The above may also be done in collaboration with or by the key animator or animation director.

Scriptwriter: The scriptwriter provides the written treatment; outlines the continuity of the story, dialogue or action and the parts the various characters will play in it; elaborates upon the script during the process of visual development at the storyboard stage.

Storyboard Supervisor: The storyboard supervisor, co-operating with the writer, or instead of the writer (depending on the type of production and studio organization) creates visual development running parallel to the written text in pictures; determines the flow of action from one scene to another; creates a series of drawings with the associated continuity showing the major action and scene changes.

First or Second Lead Voice: Leading or second-leading actor reading a character voice.

Design Supervisor: The design supervisor is responsible for the style, the visual character, the colour theme and colour continuity; develops the tones of the backgrounds, figures and textures; can sometimes create the actual characters jointly with the director; prepares visual proportion charts of the characters to safeguard uniformity during the production. (This position is also referred to sometimes as the art director or the character designer).

Layout (Location): The layout artist, working from the storyboard, outlines the graphic organization in the form of line drawings of background environment and staging of action for the animators' and background artists' reference. The layout artist also draws up camera field references. In feature work the layout artist will also provide a detailed tonal rendering for the background department. (A related position is that of the poser. However, the poser is an animator whose work is preliminary and ephemeral and is not part of the final print.)

Background (Location): Provides finished backgrounds for individual scenes of a film.

Key Animator/Animation (person and location): The animator is primarily responsible for the creative vitality of the production, draws the key phases of movement that determine the life and expression of the characters; creates the movement of figures or objects; roughs out the timing path or sequence of the animation; and provides on dope sheets technical information to the camera operator about the order in which individual animation phases should be photographed. The animator depicts extremes of movement to provide key drawings and sets the style and character of the sequence. The key animator's work is part of the final print. (This position is sometimes also referred to as the animator.)

Assistant Animation/In-Betweening (location): The assistant animator(s) and in-betweener(s) complete the breakdown drawings and in-between work, once the key characters or figures have been determined by the animator and the animation has been done. Breakdown drawings are the main drawings between the key animation drawings that help to define the path of action. In-between drawings are done after the main path of action breakdown drawings are completed.

Camera Operator and Operation (Person and Location): The camera operator operates the camera for the purpose of recording the sequences of cells and backgrounds according to instructions from the director.

Music Composer: The music composer writes the music or lyrics, or both, specifically for the production.

Picture Editor: The picture editor assembles individual shots and sequences in continuity and fits them to the various soundtracks; provides the sound effects track; analyses the characteristics of the music or dialogue track; provides information to animators in terms of timed film frames; supervises the dubbing, the separate sound tracks; and liaises with laboratories to obtain prints.

B. While the following functions play a significant role in animation, no points are attached to them:

Tracer/Photocopier: This function involves copying the animated line drawings onto acetate sheets, or doing the equivalent via electronic means.

Opaquer: This function involves the application of paint to the inked-in outlines of acetate drawings or cells, or doing the equivalent via electronic means.

Animation Director: For large feature productions the function of animation director is sometimes created to supervise the animation of an entire sequence. For television specials and series, the animation director will sometimes be responsible for supervising the whole production (see director).